8 High-Growth Technology Stocks With Bearish Short Trends

Do you like to follow smart money buying and selling trends? One group of smart money investors includes short sellers, who take positions that are profitable if a stock price falls.

We ran a screen on the technology industry to find which stocks investors are selling short. Some investors look for technology companies that are increasing their research and development spending to innovate new products and services. This screen, gives you a list of companies that institutional investors think will underperform in the near-term.

We began by screening the technology industry for stocks with high growth prospects, with 5-year projected EPS growth above 15%.

We then screened these names for those with bearish sentiment from short sellers, with significant increases in shares shorted month-over-month as a percent of share float. This indicates that short sellers are more bearish on these names than they were a month ago.

Interactive Chart: Press Play to compare changes in market cap over the last two years for the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.

Do you think these stocks will underperform like short sellers expect in the near term? Or could this be a bigger picture issue, meaning the EPS growth rates are too optimistic?

Use this list as a starting point for your own analysis

1. Cavium, Inc. (NASDAQ:CAVM): Designs, develops, and markets semiconductor processors for intelligent and secure networks. Market cap at $1.6B, most recent closing price at $31.16 Net institutional sales in the current quarter at -2.6M shares, which represents about 5.34% of the company's float of 48.69M shares. 5-year EPS growth at 22.5%.

3. Digital River Inc. (NASDAQ:DRIV): Provides outsourced e-commerce solutions worldwide. Market cap at $521.23M, most recent closing price at $14.16. Net institutional sales in the current quarter at -2.8M shares, which represents about 9.64% of the company's float of 29.05M shares. 5-year EPS growth at 16%.

4. F5 Networks, Inc. (NASDAQ:FFIV): Provides technology that optimizes the delivery of network-based applications, and the security, performance, and availability of servers, data storage devices, and other network resources in the Americas, EMEA, Japan, and the Asia Pacific. Market cap at $7.69B, most recent closing price at $96.19. Net institutional sales in the current quarter at -10.8M shares, which represents about 13.73% of the company's float of 78.64M shares. 5-year EPS growth at 19%.

5. Lam Research Corporation (NASDAQ:LRCX): Engages in designing, manufacturing, marketing, and servicing semiconductor processing equipment used in the fabrication of integrated circuits. Market cap at $6.27B, most recent closing price at $36.95. Net institutional sales in the current quarter at -21.4M shares, which represents about 12.55% of the company's float of 170.51M shares. 5-year EPS growth at 21.2%.

6. Universal Display Corp. (NASDAQ:PANL): Engages in the research, development, and commercialization of organic light emitting diode ((NASDAQ:OLED)) technologies and materials for use in flat panel display, solid-state lighting, and other product applications. Market cap at $1.2B, most recent closing price at $24.53. Net institutional sales in the current quarter at -2.5M shares, which represents about 7.04% of the company's float of 35.52M shares. 5-year EPS growth at 24.5%.

7. Qihoo 360 Technology Co. Ltd (NYSE:QIHU): Provides Internet and mobile security products in the People's Republic of China. Market cap at $3.2B, most recent closing price at $26.43. Net institutional sales in the current quarter at -3.6M shares, which represents about 6.33% of the company's float of 56.88M shares. 5-year EPS growth at 51.65%.

*Short data sourced from Yahoo! Finance, all other data sourced from Finviz.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Business relationship disclosure: Business relationship disclosure: Kapitall is a team of analysts. This article was written by Sabina Bhatia, one of our writers. We did not receive compensation for this article (other than from Seeking Alpha), and we have no business relationship with any company whose stock is mentioned in this article.

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